MW AMC's most liquid bond is rallying following the movie-theater chain's fourth-quarter results

By James Rogers

AMC reported better-than-expected fourth-quarter revenue this week, boosted by an improving box office

AMC Entertainment Holdings Inc.'s most liquid bond rallied this week, lifted by better-than-expected fourth-quarter revenue at the movie-theater chain and original meme stock.

The following chart from data-solutions provider BondCliQ Media Services shows that AMC's $(AMC)$ 7.5% notes due Feb. 15, 2029, rallied following the company's results late Tuesday.

In the last 24 hours, the higher price brought out more sellers than buyers of the AMC bond, as the following chart from BondCliQ shows.

Related: AMC's stock climbs as improving box office boosts Q4 revenue, while CEO slams 'crackpot conspiracy theorists'

The stock initially rallied in the wake of AMC's results, which were boosted by an improving box office. AMC shares ended Wednesday's session down 0.3% but are up 0.8% Thursday.

AMC has been busy restructuring its debt. Last year the company pushed $2.4 billion of its long-term debt out from 2026 to 2029 and 2030. Speaking during the conference call to discuss the fourth-quarter results, AMC Chief Executive Adam Aron said that the company is "continuing to focus" on strengthening its balance sheet, reducing its debt and lengthening maturities.

The company's chief financial officer, Sean Goodman, said AMC has reduced its total debt by $1.34 billion since the start of 2022.

Related: AMC's stock slid this year, but its most-liquid bond is a different story

In the 10-K filing that accompanied AMC's fourth-quarter results, the company said it has "a substantial amount of indebtedness, which requires significant interest payments." As of the end of December, the company's corporate borrowings were $4.0751 billion, or an aggregate principal amount of $4.1345 billion. Finance lease obligations at the end of December were $49.3 million, according to AMC.

AMC shares are down 23.9% in the last 12 months, while the S&P 500 index SPX has gained 16.6%.

-James Rogers

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

February 27, 2025 13:24 ET (18:24 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.